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Another Modular Refinery set for commissioning in Q4

• 1500 job opportunities on offer

The 2500 barrels per day modular refinery at Egbokor, Edo State will fully come on stream for commissioning in the last quarter of 2021. 

A partnership between Duport Midstream Company Limited and the Nigerian Content Development and Monitoring Board (NCDMB), the refinery is part of the Duport Energy Park designed to include a-30-million standard cubic feet per day gas processing facility and a power plant.

According to the Executive Secretary of the NCDMB, Engineer Simbi Kesiye Wabote, the project, which is about 80 per cent completed, with the modules for its two (2) Megawatts power plant as well as the control room being fabricated and assembled in Lagos for delivery to the site.

Engineer Wabote gave the confirmation during a visit to the project site where he evaluated the progress of work on the tank farms’ fabrication; civil works, pipeline installation, and other site preparation works.

Praising the contractors for the significant progress so far made on the project, Wabote said the refinery’s operational phase has the capacity to generate employment for 100 persons with about 1500 persons benefitting from indirect and induced jobs.

The NCDMB boss said the partnership with Duport Midstream outfit and other investors to develop critical energy facilities was planned to support President Muhammadu Buhari’s drive to create millions of jobs for Nigerians, adding that NCDMB is focused on jobs creation for Nigerians through its direct projects and collaboration with other project promoters.

Explaining that the Federal Government has put words into action in its resolve to remodel the erstwhile volatile Niger Delta region and give the people a better future, Wabote said; “When the Federal Government enunciated the policy on the development of modular refineries, NCDMB decided to explore ways through which we can build modular refineries to refine products locally.

“We first partnered with Waltesmith Modular Refinery in Imo State and it is already operational, refining 5000 barrels of crude per day. Azikel Modular Refinery in Bayelsa State is the second one and this Duport project is the third project and we believe that it would be commissioned in the last quarter of this year.”

Also speaking at the occasion, Chairman of Duport Midstream Company, Dr Akintoye Akindele explained that the project, the first integrated energy park, would have a scalable and environmentally friendly modular refinery, power generation, and distribution plant.

So far, three modular refineries have now been completed namely; Niger Delta Petroleum Resources (NDPR) Modular Refinery in Rivers State; OPAC Modular Refinery in Delta State; and Waltersmith Refinery in Imo state.

Also, construction is ongoing on others listed as Ikwe-Onna Refinery in Akwa Ibom; Azikel Refinery in Bayelsa; and AIPCC Refinery in Edo state.

Determined to deliver on its Niger Delta New Vision package, the President Muhammadu Buhari-led administration has effectively tackled insecurity and youth restiveness in the region with a huge positive impact on the economy, even as the establishment of private-sector-led modular refineries across the nine states of the Niger Delta is on the table.

Information contained in the 2020 NIGER DELTA Fact Sheet indicates that with the three modular refineries ready for commissioning and more to be completed soon, kudos go to the Buhari administration that the establishment of modular refinery in Nigeria is gradually gaining traction.

Spearheaded by Vice President Yemi Osinbajo, on behalf of the President, during his tour of the region and meetings with Niger Delta elders in 2017, many development experts agree the initiative is already yielding positive results in giving the region and its people a breath of fresh air.

In June 2020, the NCDMB’s Governing Council, chaired by the Minister of State for Petroleum Resources, Chief Timipre Sylva, approved the project partnership with the Duport Energy Park. It is supported under NCDMB’s commercial ventures programme, in line with the Agency’s vision to serve as a catalyst for the industrialisation of the Nigerian oil and gas industry as well as other linkage sectors.

Waltersmith Refinery, Partners to build Industrial Park in Imo

Waltersmith Petroleum and Refinery Company, a modular refinery in Ohaji/Egbema community in Imo State, has said it is working with partners to build an industrial park in the state.

This was stated by the Chief Executive Officer of the refinery, Mr Chikezie Nwosu, at the closing ceremony of a technical skills acquisition programme for some graduates. He said the project is being undertaken with support from the United Nations Industrial Development Organisation (UNIDO) and the United Nations Economic Commission for Africa (UNECA).

Nwosu said the Industrial Park will attract petrochemical, pharmaceutical, research and other light manufacturing companies that feed off the hydrocarbon value chain.

He said, “The industrial park is being developed with the support of the United Nation Industrial Development Organization and United Nations Economic Commission for Africa as part of Nigeria’s country program with the Ministry of Industry, Trade and Investment.”

Photos: OPAC Modular Refinery, Kwale, Delta

In line with the Buhari administration’s New Vision for the Niger Delta, the establishment of modular refineries in the region is already underway in the oil-rich region.

The Niger Delta New Vision is hinged on the commitment of President Muhammadu Buhari administration to develop the region and ensure that the people of the region benefit maximally from the wealth of their land. The New Vision speaks to a progressive partnership among the federal government, state government, private sector and  local communities.

“One of the nagging issues we were confronted with during my tour (of the Niger Delta) was how to deal with the proliferation of artisanal refinery and its attendant negative environmental impact. Our solution was to promote the establishment of modular refineries,” Vice President Yemi Osinbajo, SAN, said recently.

Following the approval of for the establishment of private-sector-led Modular Refineries across the Niger Delta region by the Federal Government, several modular refineries have now been now completed or undergoing construction.

Below are recent photos of OPAC Modular Refinery in Kwale, Delta State, which will be set for operations soon.

How modular refineries can create over 100,000 indirect jobs – Wabote, NCDMB

*Adds: Modular refineries should refine at least 10% of Nigeria’s oil production

At least 10 per cent of Nigeria’s oil production should be refined through modular refineries as it has the capacity to create about 3,000 direct jobs and 100,000 indirect jobs, according to the Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote.

Wabote stated this on Tuesday during the commissioning of the 5,000 barrels per day (bpd) Waltersmith Modular Refinery, developed with 30 percent equity investment by the NCDMB.

President Muhammadu Buhari had on Tuesday performed the virtual commissioning of the Waltersmith Modular Refinery, describing the role played by the Board as novel in concept and superb in delivery.

The President also performed the ground-breaking of the refinery expansion at the Ibigwe field, Ochia Community, Ohaji-Egbema Local Government of Imo State. The new phase will first add 25,000 barrels per day processing capacity, before the final phase of new 20,000 bpd, bringing total capacity to 50,000 bpd.

Delivering his address virtually, President Buhari stated that the deployment of modular refineries was one of the four elements of the Refinery Roadmap introduced the Federal Government in 2018 to meet local needs for petroleum products and eliminate importation.

According to a statement from the NCDMB, Wabote canvassed that at least 10 percent of Nigeria’s oil production should be refined through modular refineries, noting that an average of 10 direct jobs are created for every 1,000barrels/day capacity of modular refinery.

He said, “We believe that about 3,000 direct jobs and over 100,000 indirect and induced jobs can be created if 10 percent of Nigeria’s oil production is refined using modular refineries.”

The NCDMB boss also provided the basis of the Board’s equity investment in the 5,000bpd Waltersmith Modular Refinery. He hinted that Section 70(h) of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act mandates the Board to assist local contractors and Nigerian companies to develop their capabilities and capacities to further the attainment of Nigerian Content in the oil and gas sector of the economy.

According to him, “This refinery creates job opportunities and business prospects, enhances availability of petroleum products, and provides ready market for some of our crude cargo within our shores. At current capacity, this refinery will utilize about 1.8million barrels of crude oil. At the completion of the expansion works, this will increase to more than 16million barrels of crude and condensates every year.”

The Executive Secretary confirmed that NCDMB was also in partnership with other investors for the construction of a 2,500bpd modular refinery in Edo State, which will later be expanded to 10,000bpd and another 12,000bpd hydroskimming refinery in Bayelsa State, that will produce a full slate of petroleum products to serve immediate and nearby markets.

In the same vein, President Buhari assured that Government was making good progress in the Rehabilitation of existing refineries, Co-location of new refineries, and Construction of greenfield refineries, with the firm goal of making Nigeria a net exporter of petroleum products in a few years’ time.

He also commended the expansion plans of Waltersmith Refining & Petrochemical Company and directed the Ministry of Petroleum Resources and other relevant Government Agencies to provide the company all the necessary support with regards to access to crude oil and condensate feedstock for the timely delivery of the additional capacity.

In his speech, Minister of State for Petroleum Resources, Chief Timipre Sylva applauded Waltersmith and NCDMB for embarking on the project in 2018, considering the immaturity and uncertainty in the downstream sector as at that time. ”It is only investors who have faith and believe in Nigeria, with clear delivery strategy that would have had such boldness,” he emphasised.

He clarified that efforts to achieve sufficiency of locally refined petroleum products “has to be a combination of large-scale processing plants as well as small to medium modular processors which will be enabled by our progressive policies and regulations.”

He challenged other investors to take a cue from Waltersmith and speed up action on similar development efforts to jointly grow the nation’s economy.

The Governor of Imo State, Senator Hope Uzodinma while delivering a goodwill message lauded President Buhari for providing purposeful leadership and conducive investment climate that enabled the establishment of the Waltersmith Modular Refinery within two years of conception. He recalled that successive administrations had awarded licenses for similar projects, with none of them coming to fruition.

He assured that the Imo State Government will partner with the host communities to protect the investment, while charging the company to discharge its statutory obligations to government and perform its corporate social responsibility to the communities.

Modular Refineries will eliminate importation, make petroleum products available – President Buhari at commissioning of Waltersmith refinery

The establishment of modular refineries in the country will make petroleum products available in the country and eliminate importation, President Muhammadu Buhari stated on Tuesday.

According to a statement by the Special Adviser to the President, Media & Publicity, Mr. Femi Adesina, the President spoke at the virtual inauguration of the 5,000 barrels per day Waltersmith modular refinery in Ibigwe, Imo State, as well as the Ground-Breaking Ceremony for the Phase-2 works to expand the capacity of the refinery to 50,000 barrels/day.

President Buhari said the deployment of modular refineries was one of the four key elements of his administration’s Refinery Roadmap rolled out in 2018, adding that its implementation will make Nigeria a net exporter of petroleum products.

He expressed delight that Waltersmith refinery in Ohaji Egbema Local Government Area of Imo State was coming on stream within two years of the commencement of the Roadmap, after many years of granting licenses for the establishment of modular refineries with nothing to show for it.

”Furthermore, there is increased momentum in the other three focus areas under the Roadmap covering the Rehabilitation of existing refineries, Co-location of new refineries, and Construction of greenfield refineries.

”The realization of the Refinery Roadmap will ultimately lead us to becoming a net exporter of petroleum products not only to our neighbouring countries but to the worldwide market.

”This modular refinery is the largest commissioned modular refinery in the country today.

”The role played by the Federal Government through the Nigerian Content Development and Monitoring Board (NCDMB) in going into collaboration with Waltersmith Refining and Petrochemical Company is novel in concept and superb in delivery,” he said.

The President described plans to commence the expansion of the capacity of the refinery to 50,000 barrels per day to refine crude oil and condensates as an important part of economic reforms the country is undergoing.

”I look forward to seeing this new phase completed within the target timeframe,” he said.

President Buhari, therefore, directed the Ministry of Petroleum Resources, Department of Petroleum Resources (DPR), NNPC, as well as all relevant Government Agencies to provide Waltersmith Company all the necessary support to access crude oil and condensate feedstock for the timely delivery of the additional capacity.

In line with his administration’s agenda on jobs creation, the President said he was pleased to note that hundreds of direct and indirect jobs were created during the construction of the first phase of the project in addition to the various business opportunities.

Equally, he expressed hope that the construction of the second phase of the project will create bigger additional employment opportunities.

President Buhari thanked the local community and the people of Imo State for hosting the refinery, which, he stressed, will bring prosperity and economic development to the area.

The President commended the Ministry of Petroleum Resources, the Honourable Minister of State for Petroleum Resources, Timipre Sylva, the Chairman and members of the Governing Council, and the management and staff of the Nigerian Content Development Board for making the public-private partnership a success.

He also commended the Chairman, Board, Management and Staff of Waltersmith Refining and Petrochemical Limited for their professionalism and focus in getting the project completed.

Governor Hope Uzodinma of Imo State and the Minister of State, Petroleum, cut the tape on behalf of the President, at the event which was also attended by the Group Managing Director of NNPC, Mele Kyari, the Executive Secretary, NCDMB, Engr. Simbi Wabote and the Chairman of WalterSmith, Abdulrazaq Isa.

#NDNewVision: President Buhari to commission 5,000bpd Modular Refinery on Tuesday

**WalterSmith project in line with President Buhari’s vision to boost Nigeria’s oil refining capacity – NCDMB

President Muhammadu Buhari will tomorrow formally commission the WalterSmith 5,000 barrels per day modular refinery at Ibigwe, Ohaji/Egbema local government area of Imo State.

The Modular Refinery project is part of the initiative of the Buhari administration to boost local refining of petroleum products to end importation and create jobs and opportunities for people in the Niger Delta region.

The President will be supported at the event by the minister of state for Petroleum Resources, Timpre Sylva and Imo State governor, Senator Hope Uzodinma, among other top government officials, oil industry regulators and stakeholders. The president will also perform the ground-breaking ceremony for the 45,000 barrels per day refinery also initiated by Waltersmith.

The event will also feature goodwill messages from top industry players, partners and community leaders. At a recent pre-commissioning visit to the refinery, Yusuf Usman, Chief Operating Officer, Gas & Power, said, “It is a landmark achievement and it shows that we can actually refine our crude oil in-country.” The modular refinery has a crude oil storage capacity of 60,000 barrels and is projected to deliver over 271million liters per annum of refined petroleum products, including Kerosene, Diesel, Naphtha and Heavy Fuel Oils, to the domestic market. The bulk of crude oil supply for this phase will come from Waltersmith’s upstream business, with backup from the OML 53 (Ohaji South) Seplat/NNPC JV third party crude currently processed at Waltersmith Ibigwe Flowstation and additionally from the 2020 Marginal Fields Bid Round for a nearby asset.

The company then partnered with the Nigerian Content Development and Monitoring Board (NCDMB) and Africa Finance Corporation (AFC) to raise the required financing. NCDMB are 30 per cent equity partners while AFC committed senior secured credit facility towards the project.

“From the very day we keyed into this project in line with the President’s aspiration to grow the country’s oil refining capacity, we felt very happy that we are associated with Waltersmith, a serious-minded company”, said executive secretary, NCDMB, Simbi Wabote.

The Chairman, Waltersmith Group, Abdulrazaq Isa, said, “The first module to be commissioned tomorrow is 5,000bpd refining capacity. We are looking at 50,000bpd refining capacity that will come with the planned additional two modules; 25,000bpd and 20,000bpd refining capacity respectively which will then add PMS, Aviation fuel and LPG to the product slates.” Waltersmith obtained the ‘License to Establish’ the modular refinery from DPR in June 2015 and got the ‘Authority to Construct’ in March 2017.

 

Modular refinery to begin operation in 2020

The 5,000 barrels per day modular refinery being developed by Waltersmith Refining & Petrochemical Company Limited with equity investment from the Nigerian Content Development and Monitoring Board (NCDMB) would be completed in May 2020.

This date was confirmed by the Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote and the Director of Finance and Personnel Management, Mr. Isaac Yalah inspected the project site on Monday at Ibigwe, Imo State, in company of the Chairman of Waltersmith, Mr. Abdulrasaq Isah and the Executive Vice-Chairman, Mr. Danjuma Sale.

The progress completion of the project stands at 65 per cent, seven percent ahead of the original schedule. The engineering and procurement components had also been completed, with construction at 60 per cent.

Giving his assessment after taking a tour of the site, Wabote described the project as investment channelled in the right direction. He hailed the contractors-Lambert Electromac and Zerock for their remarkable pace of execution, dedication and expertise, noting that they continued with the project despite the onset of the rainy season.

He also expressed delight with the high number of Nigerians working on various aspects of the project, stating that it underscores President Mohammed Buhari’s commitment to create employment for young Nigerians from the activities of the oil and gas industry. “I hope similar projects would come on stream pretty soon to generate employment for Nigerians.“

In line with the requirements of the succession plan requirements of the Nigerian Content Act, Wabote charged the contractors to train and absorb more Nigerians in senior management positions and make them permanent members of their companies, even after the project phase.

Wabote also noted that the Ibigwe modular refinery was the first of such projects to be undertaken by the NCDMB and Watersmith and hinted that the Board had sanctioned another modular refinery project to be developed at Calabar, Cross River State.

In his comments, the Chairman of Waltersmith thanked the Executive Secretary for the visit and affirmed that the company was satisfied with the quality of work from the contractors. He also noted that Waltersmith had been steadfast on its obligations to the firms. “We expect you to remain consistent with us as well. But we are very happy with what we have seen and we are looking forward to commissioning and beginning to sell diesel and kerosene from this site in May 2020.”

The Project Manager of Lambert Electromac, Mr. Mohamad Chit stated that all outstanding construction at the site were above the ground and being fast tracked. He stated that the installation stage is expected to take four weeks when it begins in October 2019.

Chit also said the modular refinery project begun on a good footing with the host community and had continued to enjoy conviviality from the local population.

The Board and Waltersmith signed the equity investment agreement in June 2018. Wabote had explained at the ceremony that the investment decision was in line with the Board’s vision ‘to be the catalyst for the industrialization of the Nigerian oil and gas industry and its linkage sectors.’

He added that the Board was also keen to support the Federal Government’s policy on modular refineries and meet the key objectives of the Petroleum Industry’s Seven Big Wins launched by President Mohammed Buhari in October 2016 and the Economic Recovery and Growth Program (EGRP).